NatWest three call for UK inquiry

Three former NatWest bankers facing extradition to the US on fraud charges relating to an Enron subsidiary yesterday launched a judicial appeal to discover why they have not been investigated in Britain by the Serious Fraud Office. David Bermingham, Gary Mulgrew and Giles Darby are accused of conspiring with Enron executives, including convicted former finance director Andy Fastow, to embezzle $20m (£11m) from a complex NatWest investment in one of Enron's off-shore hedging structures.

The bankers' lawyers say the alleged fraud is said to have been perpetrated, principally in London, by UK citizens against a UK bank and should be investigated in the UK. Counsel for the bankers Alun Jones QC told the high court: "We say the conduct [of the SFO] demonstrates that there is an acute danger that financial cases obviously concerning the City of London and UK financial institutions are simply going to be sub-contracted out to the US to prosecute on the grounds they got there first."

NatWest has not issued a civil lawsuit to recover the funds nor has it pressed the SFO to prosecute. Neither the SFO nor City regulator the Financial Services Authority are pursuing an investigation into the affair. The bankers argue US prosecutors are pursuing them to further their case against Enron defendants. The three are separately challenging the fairness of using fast-track extradition procedures designed for terrorist cases.